How To Save Money When Buying A New House

The housing market is red hot right now, which invariably means an uphill battle for buyers. Labeled as a global market trend, there are simply too few houses to meet the demand, and those already in possession of properties have been more than happy to capitalize on price hikes, upping the cost for everyone currently looking to buy a new house. So, perhaps now more than ever, people are looking for ways to cut the costs when looking to buy a home.

Timing is everything

Even in the current market, where it seems like it’s always absurdly hectic for prospective buyers, there are notoriously high and low points throughout the year. For the most part, these revolve around times of the year when people are less likely to be wanting to go out looking for a house. As such, January and February tend to be less competitive for buyers. Equally, August and September tend to see a dip in activity because families don’t want to be on the move when the school year starts. Less competition means lower prices.

However, and without question, the only opportune time to go house hunting is when you have the funds and want to settle somewhere for at least five years. You should be making a housing decision, not an investment decision, The Atlantic quotes, as later price fluctuations are more likely to see the property appreciate over time. So, just looking to get in on the market because it’s hot isn’t the way to go right now.

Saving on the process wherever possible

When looking to buy a new house, it’s important to know that the house price alone and your required deposit will not be your only expenses. All of the paperwork, admin, agents, inspections, and the moving process itself all add up to a much larger fee than you may initially estimate. In some cases, this can mean that the resulting fees add up to nearly half of the value of some smaller deposits.

This increases the importance of knowing how much you can spend on a house, as well as the size of the mortgage you’re eligible for, and then sticking to self-imposed financial limits. You can now do this without it harming your credit score or costing additional fees. The Trussle mortgage in principle is fee-free and doesn’t impact your credit score, instead using a soft check against 18 lenders. Using free and trusted services like this can add up to save you significant sums on the overall process, and will serve as a great starting point. With a comprehensive idea of what you can afford, it’s much easier to set out realistic expectations and subsequently achieve them.

Shop around, including into older houses

A lot of the focus is put on buying the newest builds on brand new plots, but really, you have more wriggle room with older houses and private sellers rather than building associations. This piece on MyStory details how one buyer managed to save 15 lakhs on a house’s market price through negotiations alone. Even if you do want a new home, though, shopping around is always advised, as you may be more willing than you think to back down on certain aspects that you thought were must-haves, which could end up cutting costs further.

Overall, the aim of the game is to get your ideal house at the lowest price possible, so be sure to use the online tools available, shop around a lot, and the time your approach to shaving off some costs along the way.